Gazmend Lika, a director of Blue Universal Ltd, was disqualified for failing to provide sufficient accounting records and tax returns.
The disqualification, from 23 June 2016, means that Mr Lika has given an undertaking to the Secretary of State to not be a director of a company, whether directly or indirectly, for seven years unless he has permission from the Court.
The disqualification follows an extensive investigation by the Insolvency Service.
The principal trading activity of Blue Universal Limited was that of floristry and building maintenance. Without sufficient accounting records, it was not possible to verify what all the payments of 579,058 out of the company bank account were for. This amount included 86,310 in cash withdrawals and 205,520 in transfers to Mr Lika that occurred during the period from October 2010 to liquidation in October 2013. During this period, no payments were made to HMRC in respect of taxation due.
In particular, Mr Lika acknowledged that he failed to deliver up sales invoices for the construction/maintenance side of the business to the Joint Liquidators.
At liquidation, the company had also failed to comply with its statutory obligations to HMRC in particular that it had not submitted any VAT returns to HMRC for six years (June 2007 to June 2013) or PAYE returns for the tax years commencing 2008 through to 2012. In addition, no annual accounts were prepared and filed with the Registrar for periods ending September 2009 to September 2012.
Commenting on the disqualification, Lawrence Zussman a Deputy Head of Investigations with the Insolvency Service said:
This disqualification sends a clear message to other company directors: If you fail to comply with statutory legislation because you do not maintain sufficient company records to satisfactorily explain payments, or if you treat creditors such as HMRC differently to others, then you have not taken your responsibilities as a director seriously and The Insolvency Service will not hesitate to investigate and you run the risk of being removed from the business environment.